Central Bank Digital Currency Design: The Interest Rate-vs-Convenience Frontier
We explore the implications of introducing a central bank digital currency (CBDC) through commercial banks that differ in size. We focus on two design features of CBDCs: interest-bearing and payment convenience, which correspond to “store of value” and “medium of exchange” properties of currencies. A CBDC that pays interest to users enhances monetary policy passthrough, but it harms small banks by shifting deposits and lending activities to large banks.
Add to calendarAmerica/New_YorkFinTech@CSAIL Lecture Series 10/20/2021
We explore the implications of introducing a central bank digital currency (CBDC) through commercial banks that differ in size. We focus on two design features of CBDCs: interest-bearing and payment convenience, which correspond to “store of value” and “medium of exchange” properties of currencies. A CBDC that pays interest to users enhances monetary policy passthrough, but it harms small banks by shifting deposits and lending activities to large banks. In contrast, a CBDC that delivers its own convenience value to users levels the playing field by shifting deposits and lending from large banks to small ones, and it can enhance or reduce the transmission of monetary policy. We construct an interest rate-vs-convenience frontier for CBDC design, and show how a central bank’s optimal choice of CBDC can be obtained by interacting the CBDC frontier with its own objective mix between monetary policy passthrough and market competition.
Thanks to machine learning and data analytics, real estate professionals and investors are now able to make more accurate property assessments than ever before. This Data Science in Real Estate online short course from the MIT School of Architecture and Planning (MIT SA+P) focuses on growing your data science skills within the context of the built environment. During the program, esteemed MIT faculty and industry experts will teach you how to harness statistical techniques to reveal key insights into the factors that impact property investment and development opportunities.
Add to calendarAmerica/New_YorkData Science in Real Estate10/13/2021
Thanks to machine learning and data analytics, real estate professionals and investors are now able to make more accurate property assessments than ever before. This Data Science in Real Estate online short course from the MIT School of Architecture and Planning (MIT SA+P) focuses on growing your data science skills within the context of the built environment. During the program, esteemed MIT faculty and industry experts will teach you how to harness statistical techniques to reveal key insights into the factors that impact property investment and development opportunities.
Over the course of six weeks, you’ll learn how to evaluate and tidy data, expand data sets, and generate a selection of models that can be used to explain industry trends and forecast real estate values.
Artificial intelligence (AI) is spawning a new phase of automation, changing the way companies operate by optimizing processes, customer experience, and decision-making. Presented by the Massachusetts Institute of Technology's (MIT) Schwarzman College of Computing, this program is designed to help you leverage automation technologies to create value for your organization and serves as the first step in building an organizational roadmap for automation.
Our built environment — the human-made spaces in which we live and work — has evolved over centuries. But this evolution has left gaps in its wake, leading to challenges in modern cities. In the Entrepreneurship in Architecture, Planning and Real Estate online short course, you’ll learn to identify, analyze, and ultimately fill these gaps with a design-based solution.
